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TMI Blog2004 (2) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... mmitted an error again in allowing depreciation on the assets which form part of such gardens. In the result, we answer the questions in the negative, i.e., in favour of the Department and against the assessee. - - - - - Dated:- 24-2-2004 - Judge(s) : Y. R. MEENA., SHASHI KANT SHARMA. JUDGMENT The following questions are referred for the opinion of this court: "1. Whether, on the facts and circumstances, of the case the Tribunal was right in holding that the garden building and the furniture thereon were modes of advertisement to the assessee-company and the assessee was entitled to depreciation thereon? 2. Whether the learned Tribunal was right in law in holding the expenditure incurred on maintenance of gardens and depreciatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntains a guest-house at Sawaimadhopur and some of the expenses of the maintenance of lawns and gardens are also for the residence of the officers. In one case of purchase made from M/s. Jai Agro Industries Ltd. for Rs. 1,535 the bill has been debited to the Sawaimadhopur account but the date of supply has not been mentioned in the bill. It is not clear as to when the goods were received and where the goods were put to use. Whether there is any register for the seeds and plants being maintained is not clear because no such register has been produced before me. Looking to these facts, I think, out of the expenses of Rs. 47,650 an amount of Rs. 20,000 should be disallowed. (b) An amount of Rs. 50,727 has been claimed for gardening expenses a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee has maintained a garden known as Bijwasan garden which is near Palam, about ten miles away from the office of the company. A written reply has been filed wherein it has been stated that the company is maintaining a small club garden at Bijwasan near Palam. The said garden is used as club by the officers and staff members of the company. The company has control office at Delhi employing in all about 100 persons. It has been admitted that a portion of the garden is also used by the public. The contention throughout the written submission says that the maintenance of garden at Delhi is primarily for the welfare of the employees. (ii) In the statement of expenses filed, it has been stated that an amount of Rs. 55,650 has been debited un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gardens whereby it could be seen as to what type of plants have been received, where they have been used, at whose bungalow (majority of the senior officers are posted at Delhi) and when the goods were received. I had an occasion to go through the bills of Jai Agro Industries who claims to have sold plant seeds, roses to Jaipur Udyog Ltd. The bills have date of March 31, 1971 only and the dates of issue and receipt of goods are not known. The mode of transport is not known. I called for one bill SJV 93 of March 26, 1971 for Rs. 16,470 but the same was not produced. It has been debited under the consultation fees paid to the director of its subsidiary Jai Agro Industries Ltd. amounting to Rs. 12,000. Some capital expenditure is also there ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterference. This ground of appeal is, therefore, dismissed." On the same ground when the expenses were not wholly and exclusively for the purpose of business, depreciation on the capital assets was also rejected. In appeal before the Tribunal, the Tribunal though had admitted that the expenses may not have direct nexus with the business but the maintenance of the gardens have some impact on the image of the company. The relevant observation of the Tribunal is in para. 13 of its order and the Tribunal has allowed the claim of the assessee. None appeared for the respondent. Heard learned counsel for the Department, Mrs. Parinitoo Jain. The facts are not in dispute that after a detailed discussion, the Assessing Officer as well as the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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